The broad stock market rallied strongly today and may rise into the holiday (this is typical holiday week behavior) but we are holding our short positions as the bearish signals are still very strong. We are also in a time period when market prices can be very erratic (this ends Nov. 27) so sudden rallies may not get very far before turning down again.
Speaking of sudden rallies, crude oil prices jumped up almost $2.00 today on the news of escalating conflicts in the Middle East. As mentioned in our last blog post, war in the Middle East can be a wild card that interferes with our normal technical analysis of the price of oil. Because technical signals are still mostly bearish, we continue to stand aside this market for now.